Evergrande, liquidation order from the Hong Kong court


The High Court ordered the liquidation of the giant after the failure to reach an agreement with the main creditors: the negotiating marathon over the weekend ended with a stalemate on the restructuring of the offshore debt. The executive director of Evergrande: “Very regrettable decision, contrary to our original intentions.” Stocks stop on the stock exchange but the markets of the former British colony accelerate and the main stocks of the Chinese real estate sector jump

A Hong Kong court has ordered Evergrande to wind up as a result of its failure to reach a deal with major creditors after marathon weekend negotiations ended in a stalemate over offshore debt restructuring. The hearing on the liquidation of Evergrande before the High Court of Hong Kong began at 9.30 local time (2.30 in Italy) and had a very short duration, with judge Linda Chan taking note of the stalemate of the negotiations on the restructuring and the inconsistency of Evergrande’s efforts to have one potentially functioning. “Based on the clear lack of progress by the company in submitting a workable restructuring proposal, I consider it appropriate for the court to issue a winding up order against the company and to that effect I am making it,” Chan said. The judge will also hold a rare hearing in the early afternoon (2.30pm local time) on a possible “regulatory order”, the aim of which is to allow the court to regulate the liquidation process, including the potential appointment of an ad hoc liquidator.

Stop stocks on the stock exchange after liquidation order

Evergande shares were suspended on the Hong Kong stock exchange after the group’s liquidation order was decided by the court of the former British colony. Evergrande was suspended from trading on the Hong Kong Stock Exchange when it lost 20.87%, reaching new historic lows of HK$0.16 following the group’s liquidation order decided by the High Court of the former British colony. The halt to trading was also ordered for the shares of the two subsidiaries of the Shenzhen group, the former giant suffering from the profound crisis in the Chinese real estate sector, respectively active in electric cars and in the management of real estate services: Evergrande NEV (-18 .21% to HK$0.23) and Evergrande Services (-2.50% to HK$0.39).

Evergrande: “The liquidation order is very regrettable”

The executive director of Evergrande, Shawn Siu, defined as “very regrettable” the decision of the Hong Kong High Court to order the liquidation of the Shenzhen giant burdened by over 300 billion dollars in debt. “Today’s ruling is contrary to our original intentions,” the manager noted while speaking to the Chinese business daily 21st Century Business Herald, in that is the first comment on the developments. “We can only say that we have done our best and it is very regrettable,” she added, that the group “will face the difficulties and problems and will take all appropriate legal measures.” Despite the liquidation, against which an appeal is possible, the group will do everything possible “to consistently continue the normal functioning of its activities with the premise of safeguarding the rights and legitimate interests of domestic and foreign creditors” , the manager further observed. At the same time, Evergrande “will also proactively communicate with the liquidator, cooperate in accordance with the law in carrying out relevant procedures, and follow international practices and market rules to promote debt settlement work and other key tasks, including ensuring the delivery of properties.”

Hong Kong stock market accelerates despite Evergrande

The Hong Kong stock market accelerates despite the Evergrande crash: the Hang Seng index marks progress. Surprisingly, the stocks of the main Chinese real estate developers also end up on the block, heavily affected by the crisis in the sector. Instead, Chinese stock markets reverse course and lose ground.



Source-tg24.sky.it